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The Relationship between Just-in-Time Purchasing and Total Quality Management and Their Effects on the Performance of Firms Operating in the U.S.: an Empirical Investigation

Description: U.S. companies have implemented just-in-time purchasing (JITP) and total quality management (TQM) techniques to improve their global competitive position. The lack of empirical research on these techniques with firm's performance is the reason to explain further their strategic values as management innovations in different types and sizes of organizations. From a theoretical foundation on the relations between innovation, strategy and performance, the following research questions were generated: (1) Are JITP and TQM positively related to the firm's performance?, (2) Do the combination/sequence of implementing JITP and TQM have a relation with the firm's performance?, and (3) Is the relationship between JITP and TQM to the firm's performance moderated by any of industry type, firm size,firm type and/or duration of JITP and TQM techniques? A model is developed and hypotheses are proposed. A survey is mailed to firms operating in the U.S. that have implemented one or both techniques. Questionnaire items measuring JITP, TQM, performance, and moderating variables - industry type, firm size,firm type, and duration of JIT purchasing and TQM techniques— are either developed or borrowed from other studies. From rosters of the American Society for Quality Control and the National Association of Purchasing Management, 1884 target respondents result in a 20.3 percent response rate. Reliability and factor analysis of the constructs are established. The research model is tested by canonical correlation analyses before a separate hierarchical regression analysis of sets is run for each of the three performance factors: financial and market, time-based quality and material productivity. The extent of JITP and TQM implementation positively and significantly relate with firm's performance. Furthermore, the relation between JITP and financial and market performance is higher in industries that face high foreign competition. Firm size, firm type and duration of JITP and TQM techniques are nonsignificant moderators. An improved research model is ...
Date: August 1996
Creator: Kaynak, Hale, 1956-
Partner: UNT Libraries